KARACHI: Pakistan Vanaspati Manufacturers Association (PVMA) has demanded to abolish additional 5.0 percent custom duty and 3.0 percent value added tax on imported edible oils.
Office bearers of the association demanded this during a meeting with Traders of edible oils and Vanaspati Ghee.
Pakistan is the third largest importer of edible oils in the world, buying oils worth $2.5 billion annually, and also imports oil seeds worth $1.5 billion a year.
The association, in a statement, noted despite frequent announcements from the authorities and reminders from the industry, government didn’t take back the decision which would add Rs15-20/kg in the production cost.
“To promote production of oil seeds locally, 25 percent additional duty should be imposed on imported oil seeds, it would be the first step to make country self-sufficient in edible oil production,” PVMA said.
Moreover, due to ambiguities in new tax initiatives, clearance of raw material was pending and causing loss to the importers as well as national exchequer. This is also causing delay in production, which would result in supply shortages in the market.
The association demanded that for the promotion of Vanaspati and edible oil industry government should reduce taxes and duties on the sector, which is already over burdened.